Tas tax bills up by thousands under scheme

Tasmanian workers would be thousands of dollars worse off per year under the federal government's proposed state-based income tax funding model, the island's Liberal administration says.

Treasury analysts crunched the numbers overnight, leading Treasurer Peter Gutwein to declare the scheme unviable for Tasmania.

"If we were to receive our per capita share of personal income tax that's collected across the country and if Tasmanians were to contribute their per capita share it would mean that each Tasmanian would need to pay around $4500 per year in additional tax," he told reporters on Thursday.

"The proposal that's on the table whereby the Commonwealth will pay less and states will tax more just simply doesn't work for Tasmania.

"We have less taxpayers who are paid less in respect of incomes and therefore pay less tax.

"The larger states would be at a significant advantage under this proposed model and we're not prepared to support it."

The calculations were based on the broad outline of the scheme currently available and Mr Gutwein said he expected more detail to become available when state and territory leaders meet in Canberra later on Thursday.

"With what's been explained so far is doesn't stack up for Tasmania," Mr Gutwein said.

"We can't support what's on the table at this particular time."

Prime Minister Malcolm Turnbull conceded that smaller states such as Tasmania and South Australia might require special consideration under the scheme, but is yet to reveal what additional help might be available.

Tasmania has previously opposed any increase to the GST and Mr Gutwein renewed the stance on Thursday.

"What we shouldn't be doing is strangling an economy with increasing tax.

"You can't tax yourself to prosperity."

State and federal Labor representatives joined the chorus of voices against the planned tax changes, with the party calculating Tasmanians would wear a 41 per cent increased impost.

"Hitting Tasmanians with an average additional tax of around $4500 a year will force people to abandon Tasmania just to get the health and education they need and deserve," federal Labor MP Julie Collins said.

Labor called on Premier Will Hodgman to stand firm against the proposal at Friday's Council of Australian Government's meeting.